REG - Power Metal Res. - Partial Disposal of GMET Holding

Power Metal ResourcesAnnouncement

20/02/2025 12:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250220:nRST9041Xa&default-theme=true

RNS Number : 9041X  Power Metal Resources PLC  20 February 2025

20 February 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Partial Disposal of GMET Holding

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed
exploration company with a global project portfolio, announces that further
to its announcement of 11 February 2025, the Company has entered into a
legally binding sale and purchase agreement (the "SPA") with UCAM Ltd ("UCAM")
in connection with the partial disposal of its stake in Guardian Metal
Resources PLC ("GMET").

Pursuant to the SPA, the Company has sold 29,758,334 shares in GMET, and
warrants granted over 986,352 ordinary shares in GMET of £0.01 each, for a
total cash consideration of £9,225,083.91 before costs. The proceeds will be
used to redeem the £2 million loan note issued to ACAM LP on 10 June 2024,
with accrued interest, and for general corporate purposes.

UCAM is now GMET's largest shareholder with an interest of 23.45% of GMET's
issued share capital. Power Metal retains 24,699,825 ordinary shares
representing 19.46% of GMET's issued share capital, with a value of
approximately £8.15 million based on GMET's closing share price on the AIM
Market of the London Stock Exchange as at 19 February 2025.

Tamesis Partners LLP acted as the Company's Financial Adviser in relation to
transaction.

Sean Wade, Chief Executive Officer of Power Metal Resources, commented:

"I am pleased to confirm completion of the previously announced partial sale
of our GMET interest, realising over £9.2 million of cash proceeds and a
return of nearly 10 times on this part of our original investment. GMET
remains a core holding for Power Metal and we look forward to further returns
from our investment.

Following this transaction, our share price is now largely underpinned by the
remaining value of our GMET stake and cash on hand, with significant upside
for investors through exposure to our wider portfolio including projects in
North America, Saudi Arabia, Oman, Australia and Africa."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 SP Angel Corporate Finance LLP (Nomad and Joint Broker)
 Ewan Leggat/Jen Clarke                                                          +44 (0) 20 3470 0470

 Tamesis Partners LLP (Joint Broker)
 Richard Greenfield/Charlie Bendon                                               +44 (0) 20 3882 2868

 BlytheRay (PR Advisors)                                                         +44 (0) 20 7138 3204

 Tim Blythe/Megan Ray

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-listed metals
exploration company which finances and manages global resource projects and is
seeking large scale metal discoveries.

 

The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base and strategic
metal exploration in North America, Africa, Saudi Arabia and Australia.

 

Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.

 

Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.

 

Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie distributions of assets.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISEAAAEALESEFA